Trump signs USMCA, paving way for job market boom

President Trump signed the historic United States-Mexico-Canada Agreement, replacing the Clinton-era North American Free Trade Agreement that he called a "disaster."

President Trump signed the historic United States-Mexico-Canada Agreement, replacing the Clinton-era North American Free Trade Agreement that he called a "disaster."

The USMCA, which is the biggest trade deal of all-time, covers more than $1.3 trillion of commerce, and is the second major trade deal secured by the Trump administration this year. The agreement has already been ratified by Mexico, but not yet by Canada.

"You're going to see more jobs all across the economy, in the automobile sector, in the agricultural sector and of course in the energy sector as well," Energy Secretary Dan Brouillette told FOX Business' Maria Bartiromo on Wednesday.

The USMCA requires 75 percent of automobile components be manufactured in the United States, Canada or Mexico in order to avoid tariffs. By 2023, some 40 to 45 percent of automobile parts must be made by workers who earn at least $16 an hour.

The agreement is expected to create 80,000 new jobs tied to the auto industry and bring in up to $30 billion of new investment in the sector. The pact will also open new markets for American wheat, poultry and eggs, among other things.

"This is a colossal victory for our farmers and ranchers," Trump said at the signing ceremony. "Everybody said this was a deal that could not be done," he added, "but we got it done."

The Republican Governors Association (RGA) released the following statements following President Donald J. Trump’s signing of implementation legislation for the U.S.-Mexico-Canada Agreement (USMCA):

“I join with my fellow Republican governors in applauding the passage and implementation of USMCA, which is an incredible win for our job creators, our farmers, and all Americans. I thank the President and his administration for their leadership on this historic initiative, and I thank Congress for its long-overdue action to achieve final passage,” said RGA Chairman Texas Governor Greg Abbott. “This comprehensive, modernized trade agreement will usher in a new era of economic prosperity for our nation, while protecting jobs and expanding opportunities for states to seek new investments and foster new partnerships.”

“The USMCA is a once-in-a-generation opportunity to level the playing field for American workers and take our trade relationships with Mexico and Canada to the next level,” said RGA Vice Chairman Arizona Governor Doug Ducey. “Today’s signing of the USMCA provides businesses in our states with the stability they need to grow and create new jobs, and further supercharge our booming national economy.”

“Strong relationships with our neighboring trade partners are vital for growing state economies,” said RGA Policy Chairman Indiana Governor Eric Holcomb. “The modernized USMCA is critical for the future of Indiana and America’s agricultural and manufacturing industries, and represents a truly comprehensive policy solution that encourages free and fair trade for decades to come.”